Indian Real Estate Equity Investments to Hit $10B in 2024

India’s real estate sector is poised for a historic year in 2024, with equity investments projected to exceed $10-11 billion, according to a recent CBRE-CII report. This milestone underscores the robust growth of Indian real estate equity investments, driven by strong investor interest and emerging opportunities across various markets, including tier-II cities.

Key Highlights of Indian Real Estate Equity Investments in 2024

1. Record Growth in Equity Inflows:
   • Between January and September 2024, Indian real estate equity investments reached $8.9 billion, marking a 46% year-on-year growth.
   • The average deal size increased to $45 million, up from $36 million in 2023.
2. Sector-Wise Distribution of Investments:
   • The office sector saw a remarkable revival, achieving nearly 50% year-on-year growth in investment inflows.
   • Land and development sites, along with the office sector, accounted for over 70% of total Indian real estate equity investments.
   • Residential, retail, and mixed-use sectors also saw a notable rebound, with residential developments attracting 64% of the investments in land and development sites.
3. Tier-II and III Markets Gaining Traction:
   • Equity inflows into tier-II and III cities totaled $0.6 billion, with Ludhiana, Mohali, and Coimbatore emerging as key contributors.
   • The SEBI SM REIT framework is expected to further boost Indian real estate equity investments in smaller, high-quality assets across these markets.
4. Top Contributors to Capital Inflows:
   • Developer companies led the pack, contributing 41% of total inflows.
   • Domestic investors, mainly developers, dominated the market with $6 billion, accounting for 65% of total Indian real estate equity investments.
5. Gateway Cities Leading the Way:
   • Delhi-NCR, Mumbai, and Bengaluru retained their status as preferred markets, collectively securing 63% of investment inflows.
   • Delhi-NCR emerged as the leader with a 26% share, equivalent to $2.3 billion.

Debt Financing Hits New Highs

In addition to equity investments, debt financing also soared, exceeding $4.7 billion in January-September 2024—a twofold increase compared to the same period last year.

Expert Insights

Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, stated, “The projected equity investments of $10-11 billion in 2024 reaffirm the growth potential of Indian real estate equity investments. The SM REIT framework will enable smaller markets to become significant avenues for strategic capital.”

Conclusion

With strong investor confidence, rising equity inflows, and expanding opportunities in tier-II markets, Indian real estate equity investments are set to redefine the sector in 2024. Gateway cities remain key investment hubs, while smaller markets are gaining traction, making this a pivotal year for the industry.

Read more: Why Noida Real Estate is Outpacing Delhi and Gurgaon

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